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The Human Resources Briefs below are a general overview of the subject matter, and are not meant to provide legal opinions regarding any specific case, matter, or set of facts, or to substitute for the professional advice of Waag and Co.

JULY 2001

DOT REVISES DRUG AND ALCOHOL TESTING RULES: The U.S. Department of Transportation has implemented several changes in drug and alcohol testing regulations that impact transportation employees in safety-sensitive positions, such as bus drivers, railroad workers, airline mechanics and flight crews. The most important changes involve validity testing, which is designed to detect samples that have been tampered with or substituted. To ensure fairness to employees, when a laboratory suspects that a sample has been adulterated, an employer-paid physician must review the test results to determine whether there is a legitimate medical reason that accounts for the results. An employee can also have a sample retested by a different lab. These provisions took effect on Feb. 19, 2001. Other changes, including enhanced training requirements for drug and alcohol testing personnel, go into effect Aug. 1, 2001.

CONGRESS SCRAPS OSHA'S ERGONOMIC RULE-FOR NOW: In a major victory for business, Congress voted in March 2001 to rescind the federal ergonomics rule that took effect in the final days of the Clinton Administration (see Waag and Co. bulletin from December 2000). The ergonomics regulations covered 102 million workers at 6.1 million work sites. OSHA estimated the cost of compliance at $4.5 billion per year, but some critics said businesses would have to spend over $100 billion a year. But the federal ergonomics rules aren't dead - yet. After Congress scrapped OSHA's ergonomics standard earlier this year, new congressional bills were introduced - over the objections of President Bush and the Labor Department - that would require OSHA to issue a final ergonomics rule in two years. Labor Secretary Elaine Chao has said she will decide by September whether to pursue another mandatory ergonomics regulation or a voluntary policy. Ms. Chao has scheduled three hearings on subject, including a July 24 hearing in California. It is important to note that the Cal/OSHA ergonomics standard remains in effect, regardless of the recent federal activity.

IRS ISSUES NEW WITHHOLDING TABLES, REQUIRED EMPLOYEE NOTICE: The Internal Revenue Service has published revised income tax tables reflecting income tax decreases signed into law earlier by President Bush. Employers should begin using the revised withholding tables as soon as possible for wages paid after June 30, 2001. The W-4 Form for employee withholding was not changed. Employers must also make a new IRS notice about the tax decreases available to employees. The new notice informs employees that they may submit a new W-4 Form so the correct amount of tax is withheld from their pay. To download the new employee notice and a 2001 W-4 Form, click here.

TAX CREDIT FOR BUSINESSES COMPLYING WITH THE ADA: President Bush is urging small businesses to take advantage of the Disabled Access Credit, a tax incentive program created in 1990, to help them comply with the Americans with Disabilities Act (ADA). Businesses with 30 or fewer full-time employees, or total revenues of $1,000,000 or less, may use a credit of up to $5,000 a year to offset costs of altering facilities, using interpreters, or other steps to improve accessibility for customers or employees. Details regarding these tax credits are available at the White House website by clicking here. Employers can also obtain a free ADA Guide for Small Businesses or ADA Tax Incentive Packet at the United States Department of Justice webiste by clicking here.

 


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